Delta's 2025 Earnings Show Where Demand in Travel Is Heading
Sometimes it's all in the bottom line. Delta released its earnings Tuesday for 2025 and the numbers underscore a major traveling trend.
Despite selling $1.1 billion less in economy tickets than 2024, the airline posted a $5 billion profit—and expects to earn record profits in 2026. The difference was premium tickets.
For the first time ever, revenue from Delta's premium cabins dwarfed revenue from its economy section, according to One Mile at a Time. Thrifty Traveler editor Kyle Potter added more perspective on X.
"Premium ticket sales made up the difference," he posted. "Says everything about where the money is in travel right now."
Indeed it does.
Crazy stat from Delta’s 2025 earnings this morning:
— Kyle Potter (@kpottermn) January 13, 2026
The airline posted a $5 billion profit … despite selling $1.1 billion LESS in economy tickets than 2024.
Because premium ticket sales made up the difference. Says everything about where the money is in travel right now. pic.twitter.com/6k6Nue8C6h
Airlines Catering Towards the Wealthy
Delta and United have established themselves as industry leaders by emphasizing their premium offerings. In fact, Delta says most of its revenue comes from households that earn more than $100,000 annually.
A New York Times story from October says Delta expected revenue from its premium cabin to usurp revenue from its main cabin in 2027. It wound up happening two years ahead of time.
The shift can be traced to changes that Delta and other airlines instituted last decade to reward customers based on how much they spend. They also added lounges and other perks, an arrangement that now generates billions of dollars in profit per year.
With co-branded credit cards--Delta receives $2 billion from American Express, for example--consumers who spend big are rewarded with all sorts of special offers and upgrades.
The introduction of the basic economy ticket, which gained prominence in the late 2010s, represents the shift. The low-priced tickets are full of restrictions and fees, with United not even offering basic economy passengers a free carry-on.
In a sign of the times, American Airlines announced last month it's no longer allowing basic economy flyers to earn miles.
Discount Airlines Are Struggling
Perhaps unsurprisingly, discount airliners are struggling to keep up. Spirit Airlines, the industry leader, has filed for bankruptcy protection two times in less than a year.
Last year, United chief executive Scott Kirby called the discount-airlines model a "failed experiment" in the U.S.
In response, Southwest Airlines, which famously forewent seat assignments, now assigns seats. The company also recently introduced checked bag fees.
With major carriers offering competitive basic economy fares, smaller discount carriers are getting undercut. Still, discount and mid-level brands are struggling across the board.
The trend is personified across the hospitality industry, with chain restaurants and mid-tier hotel brands seeing business slow.
As of last year, the top 10% of earners in the U.S. drove nearly 50% of all consumer spending.